?Cbonds Weekly Review – all the latest updates in the world of Eurobonds

??The main gainers in emerging markets this week are concentrated in Asia. The Mexican companies continue to lead the losers list amid the political uncertainty and the currency depreciation.

Values of US yield curve decreased for all maturities as the Fed has decided to keep the key rates unchanged with the Fed Chair sending some dovish signs. The EM YTM Index, calculated by Cbonds, decreased by 10 basis points.

?The bond market remained stable on Thursday morning after the Federal Reserve kept interest rates unchanged on Wednesday, as bond exchange-traded funds stayed flat in early-morning trading.

?The announcement of the French elections has led to a weakening of French corporate bonds, which constitute 21% of the European IG market and 7% of the global IG index.

More news, analysis and a Top EM Eurobonds Gainers & Losers can be found in Research Hub Cbonds.?

??The Committee decided to maintain the target range for the federal funds rate at 5-1/4 to 5-1/2 percent

?Source: Federal Reserve press release

Recent indicators suggest that economic activity has continued to expand at a solid pace. Job gains have remained strong, and the unemployment rate has remained low. Inflation has eased over the past year but remains elevated. In recent months, there has been modest further progress toward the Committee's 2 percent inflation objective.

The Committee seeks to achieve maximum employment and inflation at the rate of 2 percent over the longer run. The Committee judges that the risks to achieving its employment and inflation goals have moved toward better balance over the past year. The economic outlook is uncertain, and the Committee remains highly attentive to inflation risks. In support of its goals, the Committee decided to maintain the target range for the federal funds rate at 5-1/4 to 5-1/2 percent.

In considering any adjustments to the target range for the federal funds rate, the Committee will carefully assess incoming data, the evolving outlook, and the balance of risks. The Committee does not expect it will be appropriate to reduce the target range until it has gained greater confidence that inflation is moving sustainably toward 2 percent. In addition, the Committee will continue reducing its holdings of Treasury securities and agency debt and agency mortgage‑backed securities. The Committee is strongly committed to returning inflation to its 2 percent objective.

?Emerging Markets Sovereign Debt Placement in May

Cbonds is excited to share our latest review of initial public debt offerings for May.

May saw a surge in government debt placements across four developing regions, reaching a peak in 2024.

? In Africa, major debt market economies ramped up government borrowing, with South Africa trailing behind Algeria.

? Latin America witnessed Brazil leading the pack by doubling its borrowing compared to April. Argentina also increased its borrowing, while Mexico, Colombia, and Uruguay scaled back.

? Asia experienced notable increases in government bond placements by China, Thailand, and Indonesia. Conversely, India, the Philippines, and Taiwan reduced their volumes.

? In the Middle East, only four countries issued government bonds in May. Turkey notably increased its placements, the UAE released previously unplaced bonds, and Saudi Arabia and Jordan saw reduced volumes compared to April.

?Cbonds Fixed Income Monday Snapshot

?Over the past week, US Treasury yields have increased, while yields in all other fixed income sectors (corporate and sovereign) have declined.

??Legal Adviser League Tables of International Bonds for Q1 2024

Cbonds prepared Legal Adviser League Tables of International Bonds for Q1 2024, which allows estimating companies’ activity in the primary international bonds market in terms of the number of deals, where legal support was provided.

The league tables take into account Plain Vanilla international bonds placed in Q1 2024. League tables include only those legal advisers, which provided legal support in local/international law.

⚡️Issuer & Arranger Legal Adviser League Table of International Bonds, Q1 2024
In the ranking, first place was taken by Sullivan&Cromwell with the result of 11 issuers and 31 issues. It is followed by Allen and Overy, which provided legal support to 23 issuers with 30 issues, and Linklaters is taken third place with legal support to 20 issuers and 30 issues.

⚡️Issuer & Arranger Legal Adviser League Table of International Developed Market Bonds, Q1 2024
In the ranking, first place was taken by Sullivan&Cromwell with the result of
8 issuers and 27 issues. It is followed by Linklaters, which provided legal support to 16 issuers with 26 issues, and Allen and Overy is taken third place with legal support to 18 issuers and 20 issues.

⚡️Issuer & Arranger Legal Adviser League Table of International Emerging Market Bonds, Q1 2024
In the ranking, first place was taken by Allen and Overy with the result of 5 issuers and 10 issues. It is followed by Cleary Gottlieb Steen&Hamilton, which also provided legal support to 5 issuers with 10 issues, and Clifford Chance is taken third place with legal support to 4 issuers and 8 issues.

⚡️Issuer & Arranger Legal Adviser League Table of International USA Bonds, Q1 2024
In the ranking, first place was taken by Linklaters with the result of 3 issuers and 9 issues. It is followed by Sullivan&Cromwell, which provided legal support to 2 issuers with 7 issues, and Hogan Lovells is taken third place with legal support to 1 issuers and 2 issues.

⚡️Issuer & Arranger Legal Adviser League Table of International ESG Bonds, Q1 2024
In the ranking, first place was taken by Linklaters with the result of 4 issuers and 9 issues. It is followed by Sullivan&Cromwell, which also provided legal support to 4 issuers with 9 issues, and Cleary Gottlieb Steen&Hamilton is taken third place with legal support to 5 issuers and 7 issues.

Cbonds appreciates legal advisers which are included in the process of confirming participation in the deals. To all participants of the primary bonds and Eurobonds market we offer cooperation, which makes our rankings fairer and more reflective of the real market situation.

?Contact: [email protected]

?? Corporate Sukuk Dominates Global Market in First Quarter of 2024

? Cbonds is excited to introduce the latest edition of our Sukuk Report, a statistical analysis of global sukuk issuances.

In the first quarter of 2024, the global sukuk market saw an issuance totaling USD 40.47 billion.

A notable feature of this quarter was the dominance of corporate sukuk, making up 56.88% of the total sukuk issued. Government sukuk followed closely with a share of 43%.

The largest volume of sukuk was issued by Saudi Arabia, amounting to USD 15.91 billion. This was followed by Kuwait with an issuance of USD 6.07 billion and Malaysia with USD 4.95 billion.

It is also worth noting that some smaller economies, such as Luxembourg and South Africa, contributed to the development of the sukuk market by issuing sukuk worth USD 60 million and USD 15.98 million respectively.

??Cbonds has prepared the league tables for investment banks – Bookrunners of International bonds for Q1 2024

We are pleased to announce the publication of the league tables for investment banks – Bookrunners of international bonds for Q1 2024. The league tables take into account Plain Vanilla international bonds placed in Q1 2024.

⚡️Bookrunner League Table of International Bonds, Q1 2024
In the ranking, first place is taken by JP Morgan with the result of 369 issuers and 673 issues. It is followed by Citigroup, which provided placing to 302 issuers with 582 issues, and BofA Securities is at third place with placing to 340 issuers and 567 issues.

⚡️Bookrunner League Table of Developed Market International Bonds, Q1 2024
In the ranking, first place is taken by JP Morgan with the result of 318 issuers and 601 issues. It is followed by Citigroup, which provided placing to 245 issuers with 496 issues, and BofA Securities is at third place with placing to 304 issuers and 516 issues.

⚡️Bookrunner League Table of Emerging Market International Bonds, Q1 2024
In the ranking, first place is taken by Citigroup with the result of 57 issuers and 86 issues. It is followed by JP Morgan, which provided placing to 51 issuers with 72 issues, and HSBC is at third place with placing to 43 issuers and 58 issues.

⚡️Bookrunner League Table of ESG International Bonds, Q1 2024
In the ranking, first place is taken by BNP Paribas with the result of 46 issuers and 62 issues. It is followed by Citigroup, which provided placing to 37 issuers with 50 issues, and HSBC is at third place with placing to 39 issuers and 50 issues.

➡️You can find the full list of Cbonds league tables at the following link.

Cbonds expresses its gratitude to the investment banks involved in validation of deals included in the Cbonds rankings. To all participants of the primary bonds and Eurobonds market we offer cooperation, which makes our rankings fairer and more reflective of the real market situation.

?Contact: [email protected]

?? ?The Governing Council today decided to keep the three key ECB interest rates unchanged

Source: ECB press release

The incoming information has broadly confirmed the Governing Council’s previous assessment of the medium-term inflation outlook. Inflation has continued to fall, led by lower food and goods price inflation. Most measures of underlying inflation are easing, wage growth is gradually moderating, and firms are absorbing part of the rise in labour costs in their profits. Financing conditions remain restrictive and the past interest rate increases continue to weigh on demand, which is helping to push down inflation. But domestic price pressures are strong and are keeping services price inflation high.

? The Governing Council is determined to ensure that inflation returns to its 2% medium-term target in a timely manner. It considers that the key ECB interest rates are at levels that are making a substantial contribution to the ongoing disinflation process. The Governing Council’s future decisions will ensure that its policy rates will stay sufficiently restrictive for as long as necessary.

The interest rate on the main refinancing operations and the interest rates on the marginal lending facility and the deposit facility will remain unchanged at 4.50%, 4.75% and 4.00% respectively.

?**Largest EM issues of April 3-5

Issue | Volume**

??Kazakhstan
Development Bank of Kazakhstan (Baa2/BBB-/BBB), 13% 15apr2027, KZT 100 bn
Initial issue price (yield): 99.397% (13.25%)
The purpose of placing: General Corporate Purposes, Sustainability project

Development Bank of Kazakhstan (Baa2/BBB-/BBB), 5.5% 15apr2027, USD 500 mln
Initial issue price (yield): 99.727% (5.60%)
Spread to US Treasury bonds: 109.2 bp
The purpose of placing: General Corporate Purposes

??Brazil
Movida Participacoes (Ba3/BB-/BB), 7.85% 11apr2029, USD 500 mln
Initial issue price (yield): 98.888% (7.85%)
The purpose of placing: General Corporate Purposes, Refinance

?BOND SEARCH